New out of court dispute resolution system for some types of insurance disputes
We are pleased to provide an overview of the technical and implementing regulations issued by IVASS (the Italian Insurance Supervisory Authority) on May 23, 2025, regarding the Insurance Arbitrator System.
The Insurance Arbitrator System is an out-of-court dispute resolution system for disputes involving insurance companies and brokers, as mandated by Article 187.1 of the Private Insurance Code.
Key points of the IVASS regulation on the Insurance Arbitrator System include:
- Automatic Membership: Insurance companies and intermediaries carrying on business in Italy (including those operating under FoS and FoE regimes) are automatically members of the Insurance Arbitrator System. However, EU operators operating in Italy under the FoS regime are allowed to opt-out of the System by notifying IVASS of their membership in another recognized out-of-court settlement system.
- Scope of Application: The Insurance Arbitrator System handles disputes arising from insurance contracts, both life and non-life, within specified monetary limits, as well as regarding the alleged breaches of insurance distribution rules. It serves as an alternative to mediation and other ADR procedures, which a plaintiff shall complete as a preliminary condition to bring actions before Court. During the so-called public consultation phase, IVASS confirmed the applicability of the Insurance Arbitrator also to cases of direct action within the scope of the medical liability insurance framework.
- Procedure: The process before the Insurance Arbitrator System requires the insured to first unsuccessfully submit a complaint to the insurer or intermediary; IVASS regulation disciplines the details of the procedure before the arbitrator, with specific time limits for counter arguments, replies, and decisions. The decision must be rendered within 90 days, extendable once.
- Reviewing Panel: Each reviewing panel consists of five members appointed by IVASS, which shall identify the panel within the lists provided by the consumers’ and trade associations. A technical secretariat (the “TS”) supports the work of the Reviewing Panel.
- Non-binding effects, Publicity of Non-Compliance: Decisions issued by the panel do not produce the same effects as an arbitration award or judgement. However, if an insurer or intermediary does not comply with the decision of the Reviewing Panel, IVASS publicizes this on the Insurance Arbitrator's website and the website of the insurer/intermediary for a specified period.
The IVASS Regulation also provides information on: (i) submitting an appeal, (ii) the activities of the TS, and (iii) implementation of the Insurance Arbitrator System regulations.
Submitting a dispute to the Insurance Arbitrator
IVASS provides the following guidance:
- A portal to file a dispute, accompanied by a user guide, is available on the Insurance Arbitrator's website.
- In cases of so-called horizontal collaborations, the plaintiff can choose whether to bring a dispute against the wholesale or retail intermediary, depending on the specific grievance.
- The insurer or intermediary formally receiving the appeal must forward it to other intermediaries involved in the dispute and acquire their respective defenses and documentation.
- If there are separate grounds for complaint against both the insurer and intermediary, the complaint may be addressed to both.
- Notification by the relevant insurer / intermediary to the Technical Secretariat of the execution of the decision can also be made through trade associations. The Technical Secretariat receives such communications and may request clarification from the parties within 30 days.
- Reimbursements and contribution payments are detailed on the website. Any party may request corrections of clerical or calculation errors within 30 days of receipt of the reasoned decision.
Implementation of the Insurance Arbitrator System
The provisions regarding the Insurance Arbitrator System came into effect on May 23, 2025.
Our insurance team in Italy is prepared to assist with proceedings before the Insurance Arbitrator and provide guidance on how to comply with the new regulatory changes. They are also available to revise contractual and pre-contractual documentation considering these changes.
For more information, or assistance, contact Salvatore Iannitti.
